...Lockheed Martin * Background Information Headquartered in Bethesda, Md., Lockheed Martin is the largest arms-producing and military services company in the world, in addition to being the largest federal contractor in the United States of America. Its core business areas are Aeronautics, Information Systems & Global Solutions, Missiles & Fire Control, Mission Systems & Training and Space Systems. * Disclosure Policy Lockheed Martin mentions about its disclosure policy under the section of Management’s Discussion and Analysis of Financial Condition and Results of Operation in its Annual Report. It has a number of programs that are designated as classified by the U.S. Government. Such classified programs are consequently not specifically described in the Annual Report. Instead, they are implicitly included in the consolidated business segment results. * General Analysis of the 2012 Annual Report The Annual Report shows the financial data based on customer category. It is shown that in 2012, the total net sales to the U.S. Government accounted for more than 82% of Lockheed Martin’s total net sales. This figure shows the dependence of Lockheed Martin with the U.S. Government. It also shows the amount of money that the U.S. government spent for the purchase of military weapon and equipment from Lockheed Martin in 2012. The Annual Report also shows the financial data based on business segments. It only states the figures for the net sales, operating...
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...FINANCIAL COMPARISON BETWEEN THE BOEING COMPANY AND LOCKHEED MARTIN Keith L. Hohl EMGT 452 Semester Project 14 December 1999 Table of Contents 1. Introduction/Study Objective 2. Boeing Financial Statement and Analysis 2.1. Background and Product Lines 2.2. Consolidated Balance and Income Statements 2.3. Divisional Financial Statements 2.4. Ratio and Trend Analysis 3. Lockheed Martin Financial Statement and Analysis 3.1. Background and Product Lines 3.2. Consolidated Balance and Income Statements 3.3. Divisional Financial Statements 3.4. Ratio and Trend Analysis 4. Financial Comparison between the Two Companies 4.1. Consolidated Comparisons 4.2. Military Aircraft and Space Divisions Comparisons 5. Summary/Conclusions 6. Bibliography 7. List of Tables 8. List of Figures List of Tables T-1: Consolidated Financial Balance Sheet-The Boeing Company T-2: Consolidated Income Statement-The Boeing Company T-3: Divisional Financial Summary-The Boeing Company T-4: Consolidated Financial Ratio Analysis-The Boeing Company T-5: Consolidated Financial Balance Sheet-Lockheed Martin T-6: Consolidated Income Statement- Lockheed Martin T-7: Divisional Financial Summary- Lockheed Martin T-8: Consolidated Financial Ratio Analysis- Lockheed Martin List of Figures F-1: Total Assets Divisional Trend Analysis-The Boeing Company F-2: Sales Divisional Trend Analysis-The Boeing Company F-3: Net Earnings...
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...Accounting Processes’ and Financial Statements The purpose of this paper is to provide a foundation of knowledge for accounting and financial bookkeeping. To accomplish this, I will focus on two areas. First, I will provide some general definitions for common accounting processes and ideas; namely, generally accepted accounting principles, double entry accounting, historical cost, accrual basis versus cash basis accounting, and current assets and liabilities versus non-current items. Second, I will examine recent financial statements for three companies (i.e. Samsung, Lockheed Martin, and RTL Group), specifically their balance sheet, income statement, and statement of cash flow. This examination will include a prediction of future company trends concluding with which ever imparts a better sight picture for future financial and company growth, net income versus cash flow. Defining the aforementioned terms and examining our three companies will demonstrate some core foundational accounting principles and terminology. The term ‘generally accepted accounting principles’ (i.e. GAAP) has a very specific meaning for accountants and auditors. A code of professional conduct prohibits accountants from making statements that would imply or assert financial statements or other financial data conform to ‘generally accepted accounting principles,’ unless they actually fell within those principles promulgated by a body designated...
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...Lockheed Martin A Financial Perspective Professor Edward Kaplan April 19, 2015 TABLE OF CONTENTS: Executive Summary: As the forefront of our national defense and aerospace industry, Lockheed Martin has provided complex yet highly efficient based technology driven products to their customers. With its business core highly concentrated in the aerospace industry, Lockheed Martin has branched off to include technology systems for global security, defense systems, and satellites primarily for the U.S. Department of Defense and other federal agencies. With its advanced patented technologies, Lockheed Martin has become the largest provider for such services to the U.S. Government. Head-quartered in Bethesda, MD, and employing well over 115,000 people worldwide, Lockheed Martin’s Mission; “Solve complex challenges, advance scientific discovery and deliver innovative solutions to help customers keep people safe and provide them essential services” (Lockheed Martin). It was over a hundred years ago that on August 16, 1912, Glenn L. Martin began his company in Los Angeles, California, building his first plane in a rented church building at the influence and urging of friend Orville Wright. It was also 4 months later and hundreds of miles away, that Allan and Malcom Lockheed founded the Alco Hydro-Aeroplane Company, later becoming the Lockheed Aircraft Company. Together they built high speed seaplanes that broke all types of records for flights overwater flights. Both groups...
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...DEFENSE ACQUISITION REVIEW JOURNAL Joint Strike Fighter Courtesy of Lockheed Martin Corporation 172 Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 2. REPORT TYPE 3. DATES COVERED 2004 4. TITLE AND SUBTITLE N/A 5a. CONTRACT NUMBER 5b. GRANT NUMBER 5c. PROGRAM ELEMENT NUMBER The Lean Enterprise-A Management Philosophy at Lockheed Martin 6. AUTHOR(S) 5d. PROJECT NUMBER 5e. TASK NUMBER 5f. WORK UNIT NUMBER 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Office of the Under Secretary of Defense for Acquisition Technology & Logistics 9820 Belvoir Road Fort Belvoir, VA 22060-5565 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES)...
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...Question 1 The Aerospace defense industry is huge industry that spans the entire world. Aerospace defense technology has been known to be a key innovator in today’s technologies for example the space race was a huge factor in computer technology that NASA developed and solar energy Even though it is commonly referred to as the Defense industry it obviously produces more offensive weapons. The major countries in the world that are involved in the Aerospace defense industry would be the USA with companies such as Lockheed Martin and Northrop Grumman Russia’s biggest Aerospace defense companies are, Almaz-Antey and United Aircraft Corporation. These two countries have a great majority share on sales of worldwide Aerospace or just Defense related weaponry greatly outpacing the rest of the globe. See table for more information on countries with top Aerospace/Defense exports in millions US$ globally The current outlook for the Aerospace industry in the USA could be described as bleak, with major budget cutbacks and the war in Afghanistan winding down there is currently little need for more increased spending. It has been estimated that if the USA is to make another trillion dollar in defense cuts that one million jobs would be lost, that being said there are huge opportunity abroad for the A&D also known as aerospace and defense. However not all is doom and gloom in emerging economies such as Brazil that have doubled their air force budget are key consumers for the...
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...Financial Statements: Foundational Accounting Principles and Terminology Shane R. Wagner TUI University Module 1 Case Study 29 August 2010 Abstract This paper will discuss the common fundamental accounting principles and analyze the financial statements of three major businesses. A basic understanding of the General Accepted Accounting Principles and the standards established within these practices, allow for investors to obtain an accurate snapshot of the financial health of a business. The different methods of documenting both current and future transactions, can have an impact on the information portrayed by the financial statements of an organization. In addition, the basic format of the financial statements can disclose additional considerations of the business, as will be discussed in the analysis of three major businesses within this paper. Information for the analysis portion was retrieved from the financial statements included in the assignment. Keywords: Accrual Basis Accounting; Cost Basis Accounting; Current Assets and Liabilities; Double Entry Accounting; Financial Accounting Standards Board (FASB); General Accepted Accounting Principles (GAAP); Historic Cost; Non-current Items; Security Exchange Commission (SEC); Financial Statements: Foundational Accounting Principles and Terminology Introduction The basic of understanding of an organizations financial statement requires one to be familiar with fundamental accounting principles...
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...------------------------------------------------- Lockheed Martin ------------------------------------------------- Audit plan 2014 Evan Booth, James Jordan Abstract This audit plan contains information critical to completing a financial audit of Lockheed Martin for the fiscal year 2014. Engagement Objective Our objectives of the audit of Lockheed Martin are to examine the balance sheets, statement of earnings, comprehensive income, cash flow statements, and stockholders’ equity for the year ending December 31, 2014. These financial statements are the responsibility of the management. Our audit will be in accordance with PCAOB standards. Our responsibility is to create and express an opinion based on our audit. Company Synopsis Lockheed Martin (LMT) is a matured company that researches, designs, and develops advanced technology systems. The company also designs and manufactures advanced products such as weaponry and aircraft. As specified in the annual report, their main areas of focus are defense, space, intelligence, homeland security, and information technology. LMT’s aeronautics business segment is by far the most profitable. The aeronautics division researches, designs, and manufactures advanced military aircraft. The F-35 program generated 17% of total net sales in 2014. In making these aircraft, many raw materials are needed. Highly advanced metals and composites are needed in order to decrease weight and increase mobility. Many plastics are needed to fabricate...
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...models and several fighters have made the F35 the outmost advanced and deadly fighter to this day. The F35 is known as a fifth generation fighter because of its combined engineering efforts and advancements of fighter aircrafts over the past fifty years. The key to air superiority is obviously having the best aviation technology which is why the AIR Force, Navy, and Marines have all participated in the F35 program as well as an International community from the UK, Italy, Norway, Netherlands, Turkey, Canada, Australia, and Denmark. The primary contractor for the F35 program is Lockheed Martin, while Northrup Grumman and BAE systems have also been major contributors to the technology and advancement of the program. As it reads on the JSF website “The focus of the program is affordability -- reducing the development cost, production cost, and cost of ownership of the JSF family of aircraft.” This statement along with defining the F35 program as a system and as a whole will be the main topic of this research paper. A system is defined as a group of elements, components and attributes working together to perform some kind of function. The JSF program as a system has many elements known as Integrated Product teams (IPT) s which work together to perform the end function of producing and maintaining the F35 multi role fighter. The JSF program has 16 components or IPT’S each with their own sub-systems which keep the system operational and sustainable at all times. In October 2001 the...
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...Boeing Boeing (stock symbol BA) is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems (Morningstar 2013). I will be looking at whether or not this companies stock should be a bought or sold, with analysis of the Liquidity, Profitability, and Solvency of the company over a three year period 2009-2011. The company’s principle clients are the U.S. government and commercial airlines. Unlike Lockheed, one of its largest and closest competitors, Boeing is not as dependent on government spending. With the 1997 merger of Boeing and McDonnell Douglas, the company further enhanced its presence in the commercial aviation arena. Today, Boeing has nearly 12,000 commercial jetliners in service worldwide, which is roughly 75 percent of the world fleet. The company has more than 170,000 employees worldwide and reported revenues of nearly $69 billion in 2011 (Boeing Website 2013). Financially, the company is divided into two main segments: * Commercial Jetliners * Defense, space and security systems LIQUIDITY Demand in the airline industry is driven by the government’s military spending and the overall global economic climate, which affects airline traffic and demand for new commercial aircrafts. Despite uncertainties, Boeing finished 2011 with record revenues of $68.7 billion and net earnings equaled an all-time high at more than $4 billion. Boeing’s profitability depends on technical expertise and the...
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...Running head: A FINANCIAL ANALYSIS FOR THE BOEING COMPANY 1 An Overview of Financial Statement Analysis for The Boeing Company. Kathleen Kelly Capella University A Financial Analysis of The Boeing Company EXECUTIVE SUMMARY: The Boeing Company is a leader in manufacturing aircraft in both commercial and military sales. The Boeing Company is the world’s largest within its industry of aerospace/defense products and services with over $90 billion in revenue at the end of 2014 (Boeing, 2015). Boeing is a top US exporter of goods and has customers in 150 countries (Boeing, 2015). Boeing is listed on the NYSE and compared to their top two competitors, Lockheed Martin and Northrup Grumman, Boeing has an operating cash flow of 7.83B while both competitors total 5.31B (Yahoo Finance, 2015). This is more than double the amount of their competitors. While Boeing clearly has a higher cash flow their profit margins are not as high as both competitors (Yahoo Finance, 2015). However, Boeing has been extremely profitable but not as profitable as recorded in 2012 (Yahoo Finance, 2015). Boeing also appears to be losing market share at the present time. A 52 week range has been 116.32-158.83 and the last day’s range has been 146.01-148.37 (Yahoo Financials, 2015). A thorough analysis will follow to compare Boeing with its major competitors as well as review Boeing’s financial data for the last 3 years to identify any noteworthy changes and...
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...Companies in the Industry 7 4. Customers 8 5. Ease of Entry/Exit 8 6. Technology/Innovation 9 7. Product Characteristics 10 A. Government 10 B. Commercial Aircraft 10 8. Scale Economies 11 A. Internal 11 B. External 12 9. Experience Curve Effects 12 10. Capacity Utilization 13 11. Industry Profitability 13 SIX FORCES OF COMPETITION 14 1. Threat of New Entrants 14 2. Bargaining Power of Suppliers 16 3. Bargaining Power of Buyers 16 4. Threat of Substitute Products/Services 17 5. Intensity of Rivalry among Competitors 17 6. Relative Power of other Stakeholders-Unions 18 COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18 COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20 Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26 KEY SUCCESS FACTORS 26 Reducing Costs 26 Maintaining Access to Foreign Markets 27 INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS 29 Factors Making the Industry Attractive 29 Factors Making the Industry Unattractive 31 Special Industry Problems and Issues 32 Profit Outlook 33 “Micro Jet” Airplanes 33 CONCLUSION 35 Works Cited 37 Appendix A. Aircraft Information Fixed-Wing Aircraft 38 INTRODUCTION The accomplishments and advancements in the aerospace manufacturing industry over the last century since the Wright Brothers...
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...Strategies Alexandra Accardi CS 782 IT Strategy and Management Alexandra Accardi CS 782 IT Strategy and Management Contents Introduction 2 Business Model 2 Boeing Commercial Airplanes (BCA) BCA is the division that deals with manufacturing commercial jetliners for more than 40 years. More than 10,000 Boeing planes are currently in service around the world which is 48% of the world fleet (boeing.com). There are a few different families in the commercial space: The 737, 747, 767, 777, and the 787 family. 2 Boeing Defense, Space & Security (BDS) 2 Boeing Capital Corporation (BCC) 2 Engineering, Operations & Technology (EO&T) \ 2 Shared Services Group (SSG) 3 Employee and Revenue Data 3 Market-Oriented Model 3 Financial-Oriented Model 4 Competitive Forces and Challenges 5 The Rivalry of Competitors 5 The Threat of New Entrants 5 The Bargaining Power of Buyers and Suppliers 6 Competitive Strategies 6 Business Model Evolution 6 Best IT-Supported Proposal 7 References 8 Introduction Boeing is a manufacturing company that produces products and services such as commercial and military aircraft, satellites, weapons, electronic defense systems, advanced information and communication systems, and performance-based logistics and training. According to the company’s website (boeing.com) “Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and...
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...Approaches to Process Performance Modeling: A Summary from the SEI Series of Workshops on CMMI High Maturity Measurement and Analysis Robert W. Stoddard II Dennis R. Goldenson January 2010 TECHNICAL REPORT CMU/SEI-2009-TR-021 ESC-TR-2009-021 Software Engineering Measurement and Analysis Unlimited distribution subject to the copyright. http://www.sei.cmu.edu This report was prepared for the SEI Administrative Agent ESC/XPK 5 Eglin Street Hanscom AFB, MA 01731-2100 The ideas and findings in this report should not be construed as an official DoD position. It is published in the interest of scientific and technical information exchange. This work is sponsored by the U.S. Department of Defense. The Software Engineering Institute is a federally funded research and development center sponsored by the U.S. Department of Defense. Copyright 2010 Carnegie Mellon University. NO WARRANTY THIS CARNEGIE MELLON UNIVERSITY AND SOFTWARE ENGINEERING INSTITUTE MATERIAL IS FURNISHED ON AN "AS-IS" BASIS. CARNEGIE MELLON UNIVERSITY MAKES NO WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, AS TO ANY MATTER INCLUDING, BUT NOT LIMITED TO, WARRANTY OF FITNESS FOR PURPOSE OR MERCHANTABILITY, EXCLUSIVITY, OR RESULTS OBTAINED FROM USE OF THE MATERIAL. CARNEGIE MELLON UNIVERSITY DOES NOT MAKE ANY WARRANTY OF ANY KIND WITH RESPECT TO FREEDOM FROM PATENT, TRADEMARK, OR COPYRIGHT INFRINGEMENT. Use of any trademarks in this report is not intended in any way to infringe on...
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...Business Case Analysis Wael M. Zaoud MGT 521 May 28, 2012 Clance Doelling MBA, BSME Business Case Analysis Executive Summary The third week assignment examines The Boeing Company (BA) strategic initiatives taken in relative to the organization and operation adaptation to the developing competitive environment. Boeing operates as a global company and facing tough competition recently from Airbus, Lockheed Martin, EADS, Northrop Grumman, etc. Politics, finance, economy, and resources (to name a few) impact the global market in which Boeing operates. As a result, Boeing needs to constantly evaluate its global strategy and the tactics it uses to capture the market and maintain growth. Economic Trends Recent global events, including regional political turmoil, natural disasters, and debt crises, have affected global economic growth. While global growth is expected to recover, the risk of persistent high oil prices and debt contagion could have lasting effects on the economy (The Boeing Company, n.d.). Economic growth also could be affected by slowing trade liberalization in some regions. Reduced liberalization could prolong the recovery period, affecting the demand for air travel and new airplanes. Though recent data indicates that the global economy continues to recover, the pace of the recovery in 2011 has moderated compared to 2010. High oil prices, natural disasters (Japan earthquake) and resulting consequences in a politically unrest Middle East area pose as primary...
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